iv
TABLE OF CONTENT PAGE
DECLARATION APPROVAL
APPROVAL DEDICATION
ABSTRACT i
ABSTRAK ii
ACKNOWLEDGEMENTS iii
TABLE OF CONTENTS iv
LIST OF TABLES vii
LIST OF FIGURES ix
LIST OF APPENDICES xi
LIST OF ABBREVATIONS xii
LIST OF SYMBOLS xiii
LIST OF PUBLICATIONS xv
CHAPTER 1.
INTRODUCTION 1
1.1 Background 1
1.2 Imbalance Coordinated Lot Sizing Decision 3
1.3 Impact of Lot Sizing Decision into Transportation Cost 5
1.4 Problem Statement 8
1.5 Research Questions 9
1.6 Research Objective 10
1.7 Research Limitation 10
1.8 Thesis Outline 11
2. LITERATURE REVIEW
13
2.1 Basic Joint Economic Lot Size Model 13
2.1.1 Single Supplier-Purchaser Supply Chain 13
v 2.1.2 Multiple Actors in Supply Chain
19 2.2 Inventory Problem with Transportation
23 2.3 Information Sharing
28 2.4 Cost Parameter
30 2.5 Shortcoming of Previous Research
32 2.6 Summary
35
3. RESEARCH METHODOLOGY
36
3.1 Overall System 36
3.2 Research Design 37
3.3 Model Development 39
3.4 Conceptual Model 42
3.5 Mathematical Model 45
3.5.1 Supplier Cost Function 46
3.5.2 Transportation Cost Function 50
3.5.2.1 Inverse Function 51
3.5.2.2 Adjusted Inverse Function 52
3.5.3 Purchaser Cost Function 52
3.5.3.1 Simple EOQ Model 53
3.5.3.2 EOQ-I Model 55
3.5.3.3 EOQ-A Model 56
3.5.4 Simple JELS Model 57
3.5.5 JELS-I Model 62
3.5.6 JELS-A Model 66
3.5.7 Validation Method 70
3.5.8 JELS-L Model 72
3.6 Model Comparison 75
3.7 Summary 80
4. ANALYSIS AND DISCUSSION
81
4.1 Numerical Example 81
4.2 Independent Decision 83
4.2.1 Simple EOQ Model with Freight Rate 84
vi 4.2.2 EOQ-I Model with Freight Rate
85 4.2.3 EOQ-A Model with Freight Rate
86 4.3 Coordinated Decision
89 4.3.1 Simple JELS Model with Freight Rate
89 4.3.2 JELS-I Model with Freight Rate
93 4.3.2.1 Incapacitated Problem for JELS-I Model
93 4.3.2.2 Capacitated Problem for JELS-I Model
97 4.3.2.3 Sensitivity Analysis of JELS-I Model
98 4.3.2.4 Effect of the Distance
d on Joint Total Cost and Transportation Cost of JELS-I Model
104
4.3.3 JELS-A Model with Freight Rate 107
4.3.3.1 Incapacitated Problem for JELS-A Model 107
4.3.3.2 Capacitated Problem for JELS-A Model 110
4.3.3.3 Sensitivity Analysis of JELS-A Model 112
4.3.3.4 Effect of the Distance d on Joint Total Cost and
Transportation Cost of JELS-A Model 118
4.3.4 JELS-L Model with Freight Rate 120
4.3.4.1 Incapacitated Problem for JELS-L Model 121
4.3.4.2 Capacitated Problem for JELS-L Model 125
4.3.5 Model Comparison Analysis 126
4.3.5.1 Comparison Independent Decision and Coordinated Decision
126
4.3.5.2 Comparison of JELS Proposed Models to The Best Solution
130
4.4 Summary 142
5. CONCLUSION AND FUTURE WORK